JSW Steel: Plumbing new depths

Mumbai : With availability of cheap iron ore at risk, output may drop and margins hit in FY12. JSW Steel is in for tough times. The market hammered the company's stock down by 10.23 per cent to Rs 695 on Monday, after the Lokayukta report, the Supreme Court (SC) imposed a blanket ban on mining in the Bellary district. This could, claim analysts, have very negative implications for the company. The company is highly leveraged to small changes in volumes/and or costs, says a foreign brokerage report.